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AMICUS AI
Citation Codes
Neutral Citations
2008 INSC 930
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 23 of the Limitation Act, 1908 corresponding to Section 22 of the Limitation Act, 1963
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2008 INSC 930
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 23 of the Limitation Act, 1908 corresponding to Section 22 of the Limitation Act, 1963
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The respondent, an ex-serviceman of the Indian Army, was invalidated out of service on 13-11-1983. Claiming entitlement to disability pension, he approached the High Court only in 1999. A learned Single Judge, by order dated 6-12-2000, allowed the petition, directed the appellants (Union of India and others) to grant disability pension, but limited arrears to thirty-eight months prior to the filing of the writ petition. The respondent was also required to appear before a Re-survey Medical Board when called.

The appellants complied and released pension as well as the limited arrears. Dissatisfied, the respondent filed a letters patent appeal seeking arrears from the original due date (13-11-1983). A Division Bench on 6-12-2006 extended arrears to the entire sixteen-year period and, by a modification order dated 23-2-2007, awarded 6% interest on the arrears. The Union of India challenged this enlarged relief before the Supreme Court.

Legal Issues Presented

  1. Whether the High Court was justified in directing payment of disability pension arrears for the entire period from 13-11-1983 instead of restricting arrears to three years prior to the filing of the writ petition.
  2. Whether interest on such arrears could be awarded in the circumstances of prolonged delay.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Balakrishna Savalram Pujari Waghmare v. Shree Dhyaneshwar Maharaj Sansthan, AIR 1959 SC 798 Explained the concept of a “continuing wrong” under the Limitation Act—distinguishing between a continuing source of injury and mere continuing effects. Used to clarify when belated service claims may be treated as continuing wrongs allowing relief despite delay.
M.R. Gupta v. Union of India, (1995) 5 SCC 628 Held that wrong pay fixation constitutes a continuing wrong generating a recurring cause of action each month; limitation bars only stale arrears, not correction of present pay. Cited to show that even when a continuing wrong exists, arrears for past periods may be time-barred and normally restricted.
Shiv Dass v. Union of India, (2007) 9 SCC 274 Emphasised that, despite a continuing cause of action in pension matters, writ relief is generally confined to a reasonable period (about three years) to avoid injustice from delay. Relied upon to justify limiting arrears to three years before the writ petition and denying interest where the claim is stale.

Court's Reasoning and Analysis

The Court synthesised the doctrines of continuing wrong and recurring/successive wrongs as applied to service jurisprudence:

  • A belated service claim is ordinarily barred by limitation or laches unless it involves a continuing wrong that creates a continuing source of injury.
  • Even when a continuing wrong is established (e.g., wrongful denial of pension), consequential monetary relief is typically confined to a three-year period preceding the legal action, drawing on the principle of recurring wrongs.
  • An exception exists where reopening an issue would unsettle third-party rights (e.g., seniority or promotions). Pension matters do not implicate third-party rights, allowing correction of the wrong prospectively.
  • Applying these principles, the Court found the respondent’s sixteen-year delay excessive. While his entitlement to disability pension had been recognised, extension of arrears for the full period, together with interest, was incompatible with established limits on stale monetary claims.

Consequently, the Division Bench’s direction to pay arrears from 1983 and to add interest was held erroneous; the Single Judge’s restrained approach accorded with legal norms.

Holding and Implications

Appeal Allowed; Division Bench order set aside; Single Judge order restored.

The respondent continues to receive disability pension, but arrears remain confined to thirty-eight months before the 1999 writ filing, and no interest is payable. The decision reiterates that, even in continuing-wrong scenarios, monetary arrears are usually limited to roughly three years, reinforcing predictability in service-related litigation without establishing new substantive precedent.

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    Union Of India And Others v. Tarsem Singh .

    R.V Raveendran, J.— Leave granted. Heard learned counsel for the parties.

    2. The respondent while working in the Indian Army was invalidated out of army service, in medical category, on 13-11-1983. He approached the High Court in 1999 seeking a direction to the appellants to pay him disability pension. A learned Single Judge by order dated 6-12-2000 allowed the writ petition and directed the appellants to grant him disability pension at the rates permissible. Insofar as arrears are concerned, the relief was restricted to thirty-eight months prior to the filing of the writ petition. The respondent was also directed to appear before the Re-survey Medical Board as and when called upon by the appellants. The appellants did not contest the said decision and granted disability pension to the respondent and also released the arrears of disability pension for 38 months.

    3. The respondent however was not satisfied. According to him the disability pension ought to be paid from the date it fell due on 13-11-1983. He therefore filed a letters patent appeal. The said appeal was allowed by the Division Bench of the High Court by judgment dated 6-12-2006. The Division Bench held that the respondent was entitled to disability pension from the date it fell due, and it should not be restricted to a period of three years and two months prior to the filing of the writ petition. By a subsequent modification order dated 23-2-2007, the Division Bench also granted interest on the arrears at the rate of 6% per annum. The said judgment and order of the Division Bench is challenged in this appeal. The only question that therefore arises for our consideration is whether the High Court was justified in directing payment of arrears for a period of 16 years instead of restricting it to three years.

    4. The principles underlying continuing wrongs and recurring/successive wrongs have been applied to service law disputes. A “continuing wrong” refers to a single wrongful act which causes a continuing injury. “Recurring/successive wrongs” are those which occur periodically, each wrong giving rise to a distinct and separate cause of action. This Court in Balakrishna Savalram Pujari Waghmare v. Shree Dhyaneshwar Maharaj Sansthan AIR 1959 SC 798 explained the concept of continuing wrong (in the context of Section 23 of the Limitation Act, 1908 corresponding to Section 22 of the Limitation Act, 1963): (AIR p. 807, para 31)

    “31. … It is the very essence of a continuing wrong that it is an act which creates a continuing source of injury and renders the doer of the act responsible and liable for the continuance of the said injury. If the wrongful act causes an injury which is complete, there is no continuing wrong even though the damage resulting from the act may continue. If, however, a wrongful act is of such a character that the injury caused by it itself continues, then the act constitutes a continuing wrong. In this connection, it is necessary to draw a distinction between the injury caused by the wrongful act and what may be described as the effect of the said injury.”

    5. In M.R Gupta v. Union of India (1995) 5 SCC 628, (1995) 31 ATC 186 the appellant approached the High Court in 1989 with a grievance in regard to his initial pay fixation with effect from 1-8-1978. The claim was rejected as it was raised after 11 years. This Court applied the principles of continuing wrong and recurring wrongs and reversed the decision. This Court held:

    “5. … The appellant's grievance that his pay fixation was not in accordance with the rules, was the assertion of a continuing wrong against him which gave rise to a recurring cause of action each time he was paid a salary which was not computed in accordance with the rules. So long as the appellant is in service, a fresh cause of action arises every month when he is paid his monthly salary on the basis of a wrong computation made contrary to rules. It is no doubt true that if the appellant's claim is found correct on merits, he would be entitled to be paid according to the properly fixed pay scale in the future and the question of limitation would arise for recovery of the arrears for the past period. In other words, the appellant's claim, if any, for recovery of arrears calculated on the basis of difference in the pay which has become time-barred would not be recoverable, but he would be entitled to proper fixation of his pay in accordance with rules and to cessation of a continuing wrong if on merits his claim is justified. Similarly, any other consequential relief claimed by him, such as, promotion, etc., would also be subject to the defence of laches, etc. to disentitle him to those reliefs. The pay fixation can be made only on the basis of the situation existing on 1-8-1978 without taking into account any other consequential relief which may be barred by his laches and the bar of limitation. It is to this limited extent of proper pay fixation, the application cannot be treated as time-barred….”

    6. In Shiv Dass v. Union of India (2007) 9 SCC 274 this Court held:

    “8. … The High Court does not ordinarily permit a belated resort to the extraordinary remedy because it is likely to cause confusion and public inconvenience and bring in its train new injustices, and if writ jurisdiction is exercised after unreasonable delay, it may have the effect of inflicting not only hardship and inconvenience but also injustice on third parties. It was pointed out that when writ jurisdiction is invoked, unexplained delay coupled with the creation of third-party rights in the meantime is an important factor which also weighs with the High Court in deciding whether or not to exercise such jurisdiction.
    10. In the case of pension the cause of action actually continues from month to month. That, however, cannot be a ground to overlook delay in filing the petition. … If petition is filed beyond a reasonable period say three years normally the Court would reject the same or restrict the relief which could be granted to a reasonable period of about three years.”

    7. To summarise, normally, a belated service related claim will be rejected on the ground of delay and laches (where remedy is sought by filing a writ petition) or limitation (where remedy is sought by an application to the Administrative Tribunal). One of the exceptions to the said rule is cases relating to a continuing wrong. Where a service related claim is based on a continuing wrong, relief can be granted even if there is a long delay in seeking remedy, with reference to the date on which the continuing wrong commenced, if such continuing wrong creates a continuing source of injury. But there is an exception to the exception. If the grievance is in respect of any order or administrative decision which related to or affected several others also, and if the reopening of the issue would affect the settled rights of third parties, then the claim will not be entertained. For example, if the issue relates to payment or refixation of pay or pension, relief may be granted in spite of delay as it does not affect the rights of third parties. But if the claim involved issues relating to seniority or promotion, etc., affecting others, delay would render the claim stale and doctrine of laches/limitation will be applied. Insofar as the consequential relief of recovery of arrears for a past period is concerned, the principles relating to recurring/successive wrongs will apply. As a consequence, the High Courts will restrict the consequential relief relating to arrears normally to a period of three years prior to the date of filing of the writ petition.

    8. In this case, the delay of sixteen years would affect the consequential claim for arrears. The High Court was not justified in directing payment of arrears relating to sixteen years, and that too with interest. It ought to have restricted the relief relating to arrears to only three years before the date of writ petition, or from the date of demand to date of writ petition, whichever was lesser. It ought not to have granted interest on arrears in such circumstances.

    9. In view of the above, these appeals are allowed. The order of the Division Bench directing payment of disability pension from the date it fell due, is set aside. As a consequence, the order of the learned Single Judge is restored.

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    Comments

    Union Of India And Others v. Tarsem Singh .
    (Aug 13, 2008)